The largest car rental company in the world went too far buying Teslas. Now they are trying to sell them to their customers at a bargain price.

Hertz bet a lot on the electric car, especially with Tesla: bought 100,000 models from the Californian firm. And the move has gone wrong: he is losing millions of dollars due to the rapid depreciation of zero-emission vehicles and especially Teslas, which continue to drop in price. To get them off their backs, this rental car company has been selling its Tesla Model 3s for a year at quite low prices. But now he has moved on to more aggressive tactics.

He is directly sending an email to customers who rent the electric cars in his fleet. offering to buy that same unit they have rented. But the price of the car also draws attention: less than 18,000 dollars for a Model 3 year 2023 which does not reach 50,000 km travelled.

“I guess it’s a good price for a Tesla with less than 30,000 miles”

A Hertz user posted on Reddit the email he received after renting a Tesla Model 3, surprised by the company’s maneuver. “Have you enjoyed your rental? Take it home with ‘Hertz Car Sales'”heads the email. In the email, indicate the VIN of the rented unit (so that there are no doubts), followed by the price: $17,913.

“This was news to me. I rent from Hertz a lot. I got this email today and laughed a little. I guess it’s a good price for a Tesla with less than 30,000 miles (about 48,300 km)“he details.

If we take a look at Tesla Model 3 now available at ‘Hertz Car Sales’it is: there are several Model 3s registered in 2023 that are offered for between $23,000 and $25,000. They all range between 60,000 and 43,000 miles or so, and are basic versions. That is, the Rear Wheel Drive.

He is not only doing it with Tesla models: another user assures that Hertz sent you the same email after renting a Polestaralso electric. They offered it for $28,500the offer is less interesting considering that on buying and selling websites like Auto Trader There are some for less than $25,000 with less than 20,000 miles. Meanwhile, on this same website, There are Model 3s also very cheapeven for $10,000. But all of them far exceed 100,000 miles.

Bargains on warranty, but they are rental cars. Low mileage is decisive in this regard. Tesla gives an eight years for the battery, or 160,000 km traveled (in our market it is set at 192,000 km), so both the one offered by email and the units mentioned from ‘Hertz Car Sales’ are under warranty. At least in theory, as long as Tesla does not have a special clause for vehicles that have been primarily rented.

If so, they are units that still have many kilometers covered due to possible problems with what is the most expensive element of electric cars. This is precisely what makes them depreciate so quickly, and even more so in a rental model.

Although these bargains have a double edge: rental cars pass through many hands. And not everyone is familiar with knowing how to treat the battery, for example using preheating before recharging. To which is added the driving itself and how much the Model 3 has been pushed to the limit.

In any case, these are semi-new units with a very competitive price: the Model 3 Long Range Rear Wheel Drive, which is the base model now available in the US, part of the $29,990. In our market the Rear Wheel Drive does the same at 39,990 euros. Thus, a Model 3 that is only one year old and has less than 50,000 km for just under $18,000 is worth considering purchasing.

Tesla and the million-dollar hole that Hertz is suffering. This aggressive strategy once again demonstrates that Hertz no longer knows how to get rid of Teslas, to the point of selling them to customers at remarkably low prices. Rental companies renew their fleets every so often, which is what in the case of Tesla is making a big hole for the company. Such was the fiasco of this fierce bet on the electric car, and specifically on Tesla, that the company’s CEO resigned in April.

Buying 100,000 models of the brand was a terrible strategy: since Tesla has greatly reduced the price of its cars, especially the Model 3 and Model Y, they have lost their value even more than a car already depreciates. electric. To prove how unprofitable the Tesla Cybertruck is for those who bought it to speculate.

Hertz signed losses of $588 million in the first quarter of 2024 and, far from improving, the numbers have gotten worse: In the third quarter they have been set at 1.3 billion dollarsto which another 1,000 million dollars are added due to the depreciation of its electric fleet.